Monitoring water infrastructure's role in the economic stimulus program
John Salo
Senior VP
Business Consulting Practice


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On the funding front

Projects are slowly getting under way as economic stimulus dollars move from the states to local governments. For example, Pima County, Ariz., broke ground on a treatment plant interconnect last week, a project that is receiving stimulus funds. The EPA is doing its part to streamline the funding process.

On June 2, EPA announced in the Federal Register a notice of a nationwide waiver for the Buy American provision of ARRA. The first waiver is for projects that had started bidding on or after Oct. 1, 2008, but before Feb. 17, 2009, when ARRA was adopted. The second waiver is for “de minimus” components of projects and defined as imported components making up no more than 5% of the total cost of materials used in the project.

Many agencies don’t expect to see much from clean water and drinking water funds from the economic stimulus program, but are looking longer-term and hoping that sustainable funding sources will be developed. Proposals for an infrastructure bank and a water trust fund are under congressional discussion, but are still in the formative stages. As we reported previously, the House and Senate SRF reauthorization bills include substantial funding for a 5-year period and are making positive progress.

This support for water infrastructure funding is carrying over into the House review of EPA’s FY 2010 budget, where the Transportation and Infrastructure Subcommittee is proposing to increase water program funding over the Obama administration’s proposed request of $10.5 billion. On a related note, EPA will be conducting a free webinar on SRF sustainability policy development from noon to 2 p.m. EST Tuesday, June 30.

On another ARRA funding front, the DOE announced June 1 details of its plan to provide $156 million to support projects that deploy efficient technologies for combined heat and power, district energy systems, industrial waste energy recovery and efficient industrial equipment. Instructions for submitting applications, as well as a list of public opportunities, can be found here.
 
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$38.5 billion to finance water projects

On May 14, the Senate Environment and Public Works Committee approved by a 17-to-2 vote the Water Infrastructure Financing Act (S.1005). This comprehensive bill authorizes $38.5 billion over five years and includes these elements:
  • $20 billion for the Clean Water SRF.
  • $14.7 billion for the Drinking Water SRF.
  • $1.85 billion grants for sewer overflows.
  • $250 million for watershed improvements.
  • $50 million for a nationwide grant program to address agricultural-related water quality issues.
Several amendments also were approved. One amendment requires the EPA to update its 1997 Combined Sewer Overflows guidance within six months; the guidance defines financial capability of communities to implement clean water projects. Another amendment provides for a study of pharmaceuticals in U.S. waters to be performed by the National Academy of Sciences.    
 
EPA also has presented its proposed $10.5 billion 2010 budget. Testimony by EPA Administrator Lisa Jackson (see the link to this testimony in our Resources column on the left) reinforces the Obama administration's top priorities: water infrastructure, freshwater resources, climate change, critical research and chemical management. 
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RECENT ENTRIES
On the funding front
$38.5 billion to finance water projects
D.C. forum offers insight on water priorities
EPA efforts streamline stimulus process
We're getting there, slowly but surely

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